The Central Bureau of Investigation on Tuesday conducted a raid at the premises of scam-ridden National Spot Exchange, FTIL, its promoter Jignesh Shah, besides the residences of group employees Joseph Massey, Sreekanth Javalgekar, and the offices of group’s erstwhile subsidiaries MCX and MCX-SX (now known as Metropolitan Stock Exchange).
Raids are being conducted at nine different locations, including corporate headquarters of companies and individual residences of top employees, said CBI sources.
In a statement, MCX and 63 moons (formerly FTIL) said the Central Bureau of Investigation and Economic Offences Wing, Mumbai are conducting the search in connection with the recognition granted by SEBI to MCX-SX (now Metropolitan Stock Exchange of India).
CBI had already conducted a raid in March 2014 and filed a preliminary enquiry report against Jignesh Shah-founded FTIL and MCX, former SEBI Chairman CB Bhave, and ex-member KM Abraham, among others.
The preliminary report was registered on alleged irregularities in granting sanction to the MCX Stock Exchange by SEBI in 2008 and renewing the recognition in 2009 and 2010.
MCX-SX was set up by FTIL and its commodity exchange arm MCX. It had started operations as a full-fledged stock exchange in 2013, after a prolonged battle with SEBI.